What is an accounting transaction?
An accounting transaction is a record of financial movement. This transactions occurs when a source document is presented and then accordingly recorded as an entry. In double entry accounting two entries will need to be generated (one debit Dr and the other credit Cr).Each of the source documents will be coded according to the details. The date, account, narration and amount will be recorded against the accounting journal.
The information that forms the accounting transaction can be retrieved from any source document. For example:
Income from a customer
GST paid to a supplier
Tax paid to the government
Petty cash receipt
An example of an accounting transactions:
27/07 Dr Customer Income, Sales Journal $2000
Cr Bank, Sales Journal $2000
Dr Bank, Debtors Journal $2000
Cr Debtor, Debtors Journal $2000
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